BA set for union talks over pension deficit

British Airways is to meet with unions this week to discuss how to reduce its estimated £1.8bn pension deficit, according to reports.

The airline is proposing that employees work longer but receive reduced benefits; and that the standard retirement age rise from 55 to 65.

The airline is prepared to pay an extra £350m into the final salary scheme and add a further £500m if unions agree to changes, but it wants to reduce the value of future benefits by £450m, reports The Daily Telegraph.

Professional services firm PricewaterhouseCoopers has produced a report on the company’s financial position for use in the negotiations.

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Chief executive Willie Walsh has said the pension deficit is “getting worse and has to be tackled”.